More research needed on privatization of state-owned enterprises

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According to economist Jim Bousaid, further research is needed before state-owned enterprises in Suriname can be privatized. The ‘Steering Group for State-Owned Enterprises’ assessed the status of these companies during 2022-2023. This task was assigned by the former Minister of Finance, Armand Achaibersing. Recently, the government has begun reviewing the final report of this steering group.
Bousaid, who was a member of the steering group, states that this is one of the few working groups that has operated at a high professional level. Although the report has been published, the process is not yet complete. He emphasizes that the next steps must be carefully planned and that an expert team should lead the way. At this stage, it is a quickscan that provides an overview of the condition of the state-owned enterprises.
The steering group has recommended that more in-depth research be conducted and that a commission be formed to create and implement a comprehensive privatization program. In an interview with Radio ABC, Bousaid stressed that privatization must proceed in an orderly manner.
The quickscan revealed that of the identified state-owned enterprises, 24 percent are public limited companies, 22 percent are sui generis institutions, and 50 percent are foundations. After about a year of screening, the steering group mapped 163 state-owned enterprises. The recommendations are as follows: 30 companies should be liquidated, 29 should be retained, 33 should be privatized immediately, and 71 should be privatized in the long term.
Bousaid advises that Suriname, following the example of neighboring Guyana, should establish an institutionalized privatization bureau, composed solely of experts. Although the steering group does not make decisions, he believes that the Surinamese Airline Company (SLM) should definitely be included in the privatization process due to the severe problems the national airline is facing.
The economist points out that Suriname has had little success with privatization projects so far. Therefore, he advocates involving experts from the private sector in the process to ensure that the execution is thorough and professional.